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Prestige Beauty - UK - December 2016

“The prestige beauty market fared well in 2015, driven by a positive financial sentiment driving high purchasing levels among affluent, young consumers. As prestige BPC products are purchased by both men and women because they want to treat themselves, encouraging self-indulgence will be key to driving growth going forward, with the ‘lipstick index’ potentially returning during the post-Brexit period of economic uncertainty.”
– Charlotte Libby, Senior Beauty Analyst

This Report discusses the following key topics:

  • Encouraging self-indulgence to further drive spend
  • Engaging young men in the prestige beauty market
  • The influence of science versus nature in prestige beauty

For the purposes of this Report, Mintel has used the following definitions:

By premium brands, we mean top-end priced brands that are typically sold behind the counter in department store beauty halls (eg Lancôme, NARS, Clarins). This also includes brands which are part of designer fashion and accessories lines (eg Dior, Chanel, YSL) and those which have their own luxury stores (eg MAC, Illamasqua, Jo Malone).

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Prestige sales grow
              • Figure 1: UK retail value sales of prestige products in BPC markets, as a % of the total, 2015
            • Young and affluent benefit from strong financial sentiment
              • Brexit uncertainty could lead to repeat of the ‘lipstick index’
                • Companies and brands
                  • Innovation dominates prestige market
                    • Figure 2: Prestige, luxe and super-luxe BPC product launches, by category, January 2013-September 2016
                  • Dietary requirements are among fastest growing beauty claims
                    • Traditional advertising decreasing
                      • Figure 3: Total above-the line, online display and direct mail advertising expenditure on prestige beauty products, January 2014-October 2016
                    • The consumer
                      • Prestige fragrances preferred over mass
                        • Figure 4: Brand types of beauty products most commonly used, October 2016
                      • Men show greatest loyalty to BPC products
                        • Figure 5: Product loyalty amongst BPC categories, October 2016
                      • Older Millennials buy the most premium beauty
                        • Figure 6: Prestige beauty products bought, October 2016
                      • Department stores up their beauty services
                        • Figure 7: Retailers premium beauty products are bought from, by gender, October 2016
                      • Evidencing the ‘lipstick index’
                        • Figure 8: Reasons for choosing premium brands over mass, October 2016
                      • Young men tempted with premium impulse purchases
                        • Figure 9: Behaviours surrounding premium and mass BPC products, October 2016
                      • What we think
                      • Issues and Insights

                        • Encouraging self-indulgence to further drive spend
                          • The facts
                            • The implications
                              • Engaging young men in the prestige beauty market
                                • The facts
                                  • The implications
                                    • The influence of science versus nature in prestige beauty
                                      • The facts
                                        • The implications
                                        • The Market – What You Need to Know

                                          • Prestige sales grow 4%
                                            • Young and affluent benefit from strong financial sentiment
                                              • Brexit uncertainty could lead to repeat of the ‘lipstick index’
                                                • Appetite for discounts among luxury goods shoppers
                                                • Market Segmentation

                                                  • Prestige growth driven by colour cosmetics
                                                    • Figure 10: UK retail value sales of prestige products in BPC markets, 2014-15
                                                  • Women’s products lead the market
                                                    • Young men use a wide range of prestige categories
                                                      • Future growth expected to continue
                                                      • Market Drivers

                                                        • Improved financial situation helps lift prestige sales
                                                          • Figure 11: Trends in how respondents would describe their financial situation, September 2015 and September 2016
                                                        • Affluent consumers feel in better financial shape
                                                          • Figure 12: Beauty and grooming product buying behaviours, September 2016
                                                        • Brexit uncertainty could lead to repeat of the ‘lipstick index’
                                                          • Growth in 25-34s to benefit the market
                                                            • Figure 13: Trends in the age structure of the UK population, by gender, 2011-21
                                                          • Ethnicity diversifying in the UK
                                                            • Figure 14: Race and ethnic background, by generation, July 2015
                                                          • Luxury shoppers show high interest in personalised products
                                                          • Companies and Brands – What You Need to Know

                                                            • Innovation dominates prestige market
                                                              • Dietary requirements are among fastest growing beauty claims
                                                                • Traditional advertising decreasing
                                                                  • Celebrities remain the preference of fragrance brands
                                                                    • Chanel, Dior and YSL stand out as highly trusted brands
                                                                    • Launch Activity and Innovation

                                                                      • True innovation dominates prestige market
                                                                        • Figure 15: Prestige, luxe and super-luxe BPC product launches, by launch type, January 2014-September 2016
                                                                        • Figure 16: Launches in the prestige colour cosmetics category tapping into the bold eye trend, 2016
                                                                      • Prestige skincare sees most NPD
                                                                        • Figure 17: Prestige, luxe and super-luxe BPC product launches, by category, January 2014 – September 2016
                                                                      • Hair products take a growing share
                                                                        • Figure 18: Launches catering for curly hair, 2016
                                                                      • Dietary requirements are among fastest growing beauty claims
                                                                        • Halal beauty
                                                                          • Figure 19: Fastest growing product positioning claims in the prestige, luxe and super-luxe BPC category, 2014–15
                                                                        • Gluten-free and vegan products
                                                                          • Figure 20: Product launches in the prestige beauty market with vegan claims, 2016
                                                                        • Vitamin-fortified formulas
                                                                          • Estée Lauder leads innovation
                                                                            • Figure 21: Launches from Victoria Beckham’s first make-up range with Estée Lauder, 2016
                                                                            • Figure 22: Prestige, luxe and super-luxe BPC product launches, by top five ultimate companies and other, 2015
                                                                          • Deciem fastest growing in terms of NPD share
                                                                          • Advertising and Marketing Activity

                                                                            • Traditional advertising decreasing
                                                                              • Figure 23: Total above-the line, online display and direct mail advertising expenditure on prestige beauty products, January 2014-October 2016
                                                                            • Designer brands are yet to move away from celebrity faces
                                                                              • Sensory experiences could create more memorable campaigns
                                                                                • Nielsen Ad Intel coverage
                                                                                • Brand Research

                                                                                    • Brand map
                                                                                      • Figure 24: Attitudes towards and usage of selected brands, November 2016
                                                                                    • Key brand metrics
                                                                                      • Figure 25: Key metrics for selected brands, November 2016
                                                                                    • Brand attitudes: Consumers are proud to be associated with Chanel
                                                                                      • Figure 26: Attitudes, by brand, November 2016
                                                                                    • Brand personality: Clarins and Aveda seen as accessible
                                                                                      • Figure 27: Brand personality – Macro image, November 2016
                                                                                    • bareMinerals garners a natural image
                                                                                      • Figure 28: Brand personality – Micro image, November 2016
                                                                                    • Brand analysis
                                                                                      • Chanel, Dior and YSL stand out as highly trusted
                                                                                        • Burberry and Tom Ford could benefit from ‘see now buy now’ catwalk strategy
                                                                                          • Clarins is expert, while Lancôme offers glamour
                                                                                            • Aveda and bareMinerals are effective in getting across their brand message
                                                                                              • Shu Uemura could do with raising its profile
                                                                                              • The Consumer – What You Need to Know

                                                                                                • Prestige fragrances preferred over mass
                                                                                                  • Targeting men an opportunity for the SBS market
                                                                                                    • Men show greatest loyalty to BPC products
                                                                                                      • Older Millennials buy the most premium beauty
                                                                                                        • Department stores up their beauty services
                                                                                                          • Prestige gives better performance
                                                                                                            • Evidencing the ‘lipstick index’
                                                                                                              • Young men tempted with premium impulse purchases
                                                                                                              • Prestige Beauty Categories

                                                                                                                • Prestige fragrances preferred
                                                                                                                  • Figure 29: Brand types of beauty products most commonly used, October 2016
                                                                                                                • Boosting the bath and shower market
                                                                                                                  • Figure 30: Premium brand users, by gender, October 2016
                                                                                                                • Premium hair products appeal most to young adults
                                                                                                                  • Figure 31: Screenshot of Vernon François Instagram account after teaming up with Teen Vogue, October 2016
                                                                                                              • Product Loyalty

                                                                                                                • Base make-up leads to loyalty
                                                                                                                  • Figure 32: Product loyalty amongst BPC categories, October 2016
                                                                                                                • Fragrances now a wardrobe not a signature
                                                                                                                    • Figure 33: Sephora Favourites Perfume Sampler, November 2016
                                                                                                                  • Men loyal to hair products
                                                                                                                    • Encouraging men to expand their product usage
                                                                                                                      • Premium brand users less loyal
                                                                                                                      • Buying Premium Beauty

                                                                                                                        • Older Millennials and the affluent buy the most premium beauty
                                                                                                                          • Figure 34: Buying premium beauty products for personal use (“yes” responses only), by gender and age, October 2016
                                                                                                                        • Fragrances most commonly purchased product
                                                                                                                          • Figure 35: Prestige beauty products bought, by gender, October 2016
                                                                                                                        • Skincare purchases driven by older women
                                                                                                                        • Premium Beauty Retailers

                                                                                                                          • Department stores up their beauty services
                                                                                                                            • Figure 36: Retailers premium beauty products are bought from, by gender, October 2016
                                                                                                                          • Superdrug attracts young consumers with extended premium range
                                                                                                                            • Grocery retailers could develop prestige SBS offering
                                                                                                                            • Reasons for Buying Premium

                                                                                                                              • Evidencing the ‘lipstick index’
                                                                                                                                • Figure 37: Reasons for choosing premium brands over mass, by gender, October 2016
                                                                                                                              • Prestige gives better performance
                                                                                                                                • Science claims trump nature
                                                                                                                                  • Figure 38: Launches with superfood ingredients, 2016
                                                                                                                                • Grabbing men’s attention in-store
                                                                                                                                • Premium vs Mass

                                                                                                                                  • Mass market products take higher monthly spend
                                                                                                                                    • Figure 39: Behaviours surrounding premium and mass BPC products, October 2016
                                                                                                                                  • Young men spend the most on prestige beauty
                                                                                                                                    • Premium products are researched before purchase
                                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                        • Abbreviations
                                                                                                                                          • Consumer research methodology

                                                                                                                                          Companies Covered

                                                                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                                                                          Prestige Beauty - UK - December 2016

                                                                                                                                          US $2,583.33 (Excl.Tax)